HomeMy WebLinkAboutItem 06 - Authorization to Transition to Electronic Signatures for Documents Department Name: Administration
Cost Center: 1021
For Agenda of: June 16, 2020
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Teresa Purrington, City Clerk
Kevin Christian, Deputy City Clerk
SUBJECT: AUTHORIZATION TO TRANSITION TO ELECTRONIC SIGNATURES FOR
DOCUMENTS
RECOMMENDATION
Adopt a Resolution (Attachment A) authorizing but not mandating the use of electronically
signed documents (e-signature) in place of hand-written signatures whenever a signature is
required, provided it is in accordance with the Uniform Electronic Transaction Act (UETA).
DISCUSSION
The Federal Electronic Signatures in Global and National Commerce Act (ESIGN) of 2000
established the equivalency of e-signatures and hand-written signatures for legally binding
documents. The UETA is the State of California act that authorizes the use of an electronic
signature for transactions and contracts among parties in California, including a government
agency. Further, the State Legislature passed AB 2296 in 2016 to clarify that a digital signature
may also be used to satisfy the requirements of an electronic signature under the UETA.
Electronic and digital signatures have been used widely in the private sector, such as real estate
and mortgage transactions. Notably, they are also used by the court system where they allow for
electronic filings of documents, including briefs.
The mainstream acceptance of signing documents electronically in place of manual, hand-written
“wet” signatures has led to; increased convenience and efficiencies, decreased time and cost
associated with transmitting, approving and retaining physical documents, as well as creation of
an audit trail of the modification, editing, and final signing of documents. The environment is
also benefitted by the widespread adoption of e-signatures with less raw source tree and water
use in paper creation, a resultant lessoning of CO2 production from that process as well as
transportation of raw materials and paper distribution, and finally end-of-lifecycle paper waste
reduction.
The City has been using e -signatures to a limited degree since 2017 and more recently expanded
their use (see “Background”). Given the benefits, the City desires to expand the use of electronic
signatures to all appropriate areas of City business.
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Background
In 2017 the Council passed Ordinance 1637 specifically accepting e-signatures for applications
for electric vehicle charging stations. To take advantage of the efficiencies of e-signing, the City
began using DocuSign for routing and signing of contracts and agreements in 2018. And most
recently the City began using e-signatures for City Council Ordinances, Resolutions, and
Minutes to limit the potential spread of COVID-19.
In the past twelve-month period, the use of e-Signatures by the City has resulted in the following
environmental impact reductions: 655 kg of wood, 14,622 liters of water, 1,474 kg of CO2, and
97 kg of paper waste.
Policy Context
U.S. Code – Chapter 96 – Electronic Signatures in Global and National Commerce – As stated in
the Act, the General Intent of the ESIGN Act is:
(1) a signature, contract, or other record relating to such transaction may not be denied legal
effect, validity, or enforceability solely because it is in electronic form; and
(2) a contract relating to such transaction may not be denied legal effect, validity, or
enforceability solely because an electronic signature or electronic record was used in its
formation.
California Civil Code 1633.1 – 1633.17: The California Uniform Electronic Transactions Act
(UETA) – The objective of UETA is to place electronic records and signatures on the same level
as paper contracts and written signatures. It applies only to those transactions between parties or
entities which have agreed to conduct their business transactions by electronic means.
California Government Code 16.5 – Specifically allows public entities to utilize e-signatures and
details acceptable attributes:
16.5
(a) In any written communication with a public entity, as defined in Section 811.2, in which a
signature is required or used, any party to the communication may affix a signature by use of
a digital signature that complies with the requirements of this section. If a public entity elects
to use a digital signature, that digital signature shall have the same force and effect as the use
of a manual signature if and only if it embodies all of the following attributes:
(1) It is unique to the person using it.
(2) It is capable of verification.
(3) It is under the sole control of the person using it.
(4) It is linked to data in such a manner that if the data are changed, the digital signature is
invalidated.
(5) It conforms to regulations adopted by the Secretary of State. Initial regulations shall be
adopted no later than January 1, 1997. In developing these regulations, the secretary shall
seek the advice of public and private entities, including, but not limited to, the
Department of Information Technology, the California Environmental Protection
Agency, and the Department of General Services. Before the secretary adopts the
regulations, he or she shall hold at least one public hearing to receive comments.
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(b) The use or acceptance of a digital signature shall be at the option of the parties. Nothing
in this section shall require a public entity to use or permit the use of a digital signature.
(c) Digital signatures employed pursuant to Section 71066 of the Public Resources Code are
exempted from this section.
(d) “Digital signature” means an electronic identifier, created by computer, intended by the
party using it to have the same force and effect as the use of a manual signature. For
purposes of this section, a digital signature is a type of “electronic signature” as defined
in subdivision (h) of Section 1633.2 of the Civil Code.
(e) Nothing in this section shall limit the right of a public entity or government agency to use
and accept an “electronic signature” as defined in subdivision (h) of Section 1633.2 of the
Civil Code.
(f) Regulations adopted by the Secretary of State to implement this section apply only to a
public entity’s use of a “digital signature” and not to use of any other type of “electronic
signature” authorized in the Uniform Electronic Transactions Act (Title 2.5 (commencing
with Section 1633.1) of Part 2 of Division 3 of the Civil Code).
Note that some specific types of documents may still require hand-written (wet) signatures, or in-
person witnessing such as is currently the case with notarizations. Therefore, each type of
document authorized to use e-signatures should be vetted by the City Attorney, City Manager,
City Clerk, or other City expert on the related document codes.
Public Engagement
As this is an administrative item, no outside public engagement was sought. Public comment can
be provided to the City Council through written correspondence prior to the meeting and through
public testimony at the meeting.
CONCURRENCE
In researching this report staff found that at least three other City Department s (Attorney’s
Office, Human Resources, and Finance) were exploring and desirous of further use of e -
Signatures to capitalize on process efficiencies.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action i n this
report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: No Budget Year: FY: 2019-20
Funding Identified: N/A
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Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund N/A
State
Federal
Fees
Other:
Total
ALTERNATIVES
The Council may choose to not authorize further use of e-Signatures at this time and request staff
to; compile further statistics on the environmental impact, solicit feedback from City partners,
vendors, and contractors who have agreed to use e-Signatures with the City, and/or from those
who have not agreed to use e-Signature, for use in further evaluation.
Attachments:
a - Draft Resolution
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R _____
RESOLUTION NO. _____ (2020 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ADOPTING A CITYWIDE POLICY
REGARDING ELECTRONIC SIGNATURE USE
WHEREAS, e-signatures (electronic signatures) that meet certain requirements are
recognized as valid and legally binding under the United States Electronic Signatures in Global
and National Commerce (“ESIGN”) Act, the California Uniform Electronic Transactions Act
(“UETA”), and California Government Code section 16. 5; and
WHEREAS, the use of e-signatures on legally binding documents has become
increasingly prevalent in the private sector but has yet to find widespread adoption by public
entities; and
WHEREAS, the benefits of using e-signatures include: reduction of paper generation;
increased efficiency for staff; increased convenience and efficiency for City residences who are in
need of City services; significant decrease in time and cost associated with transmitting, approving,
and retaining physical documents; as well as creation of an audit trail of the modification, editing,
and approval/ signing of documents; and
WHEREAS, by Ordinance 1637 the City has accepted e-signatures for electric vehicle
charging station applications since 2017, specifically, the City of San Luis Obispo Municipal Code
15.15.050, stating, “The city will accept an electronic signature on all forms, applications and other
documents in lieu of a wet signature by an applicant”; and
WHEREAS, in practice the City has been accepting e-signatures for contracts and
agreements since 2018, and
WHEREAS, to limit the chance of spreading COVID-19, City Council Resolutions,
Ordinances, and Minutes began utilizing e-signatures on March 17, 2020.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. The City Council hereby authorizes City officials, or their designees, to
accept electronic signatures, created by a system that complies with the ESIGN Act and UETA, in
lieu of handwritten signatures on all documents, unless a handwritten signature is required by law
or by decision of the City Manager in coordination with Department head(s).
SECTION 2. “Electronic signature” has the same meaning as stated in Section 1633.2(h)
of the California Civil Code, or as may be amended.
SECTION 3. The type of documents that may utilize e-signatures include, but are not
limited to; electronic communications, transactions, contracts, agreements, permits, official
minutes, resolutions, ordinances, and other official documents, both internal and external to the
City.
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Resolution No. _____ (2020 Series) Page 2
R _____
SECTION 4. This resolution of authorization does not supersede federal, state, or local
laws that specifically require a written signature.
SECTION 5. This resolution does not limit the right or option of a party to conduct the
transaction on paper or in non-electronic form. The parties to a transaction must agree to conduct
the transaction by electronic means with the use of a City-approved signature method that complies
with applicable laws and regulations, including the capability of all parties to retain the accurately
reproduced document that was electronically signed for record purposes.
Upon motion of _______________________, seconded by ________________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this ______ day of _______________ 2020.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, on ______________________.
____________________________________
Teresa Purrington
City Clerk
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